What happens to the payroll strategy when home values drop


The assignment is as follows:

Read the case of page 145 entitled: Mark Wheeler Craftsman, Inc.

Write a 5 page paper (1500 or more words) in APA format in response to the questions below.

a. Income for the firm depends on the number and size of contracts for the year. Knowing that the cash flow into the company may vary, how should employees be paid? Outline an employee payroll strategy using the information in the story.

b. The firm is subject to affordable credit and seasonal work contracts. What happens to the firm if their lines of credit suddenly become too expensive because of market panic or tough times in used home sales? How does a firm cope when the housing market becomes difficult?

c. What happens to the payroll strategy when home values drop? Why?

Attachment:- CASE Study.rar

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Financial Accounting: What happens to the payroll strategy when home values drop
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